I would love to see CoinoUSD issued as a user issued asset on BTSX and trade against BitUSD
Personally with CoinoUSD I would be afraid of a bankrun + government shutdown, etc. BitUSD has different risks and the market will eventually price them accordingly.
Here is the interesting thing... the risk for BitUSD is only the "spread" and over time that will narrow. The "volatility" you state was at launch and prior to restrictions on shorting being introduced. Give it time to mature before you judge it.
Either that.. or BTSX is in a little bit of a bubble at the moment, volume will drop as speculators get bored and move to the next coin, and the spread will increase and it'll fall apart. Couple other potential risks.
What shorting restrictions were removed?
We'll see.. would be really cool to have decentralized fiat in crypto. I just happen to be very skeptical.
I don't see any reason that CoinoUSD should have problems with this asset, it's not like they are offering unlicensed stock. If buying/selling BTC is legal, no reason CoinoUSD shouldn't be. All Coinomat is saying is that they are willing to buy your CoinoUSD from you for $1 and sell it to you for $1. I definitely think this will be more stable than BitUSD.
How are coinoUSD created?
Who holds this USD that coinoUSD is backed by?
You say you can take coinoUSD and cash out to bank account, how exactly do you do this?
Run by coinomat.com
You give them USD, via bank transfer, and they give you CoinoUSD in return.
If you want to cash out, you give them back your CoinUSD, and they give you $1 per 1 CoinoUSD asset.
More details: https://coinomat.com/coinousd.php